Income Tax Calculator — Old vs New Regime
Estimate your income tax liability under both the old and new tax regimes for FY 2025-26 / AY 2026-27. Factor in deductions like 80C, 80D, HRA, and more.
Your Income & Deductions
Old vs New Regime
Old Regime
New Regime
Old vs New Tax Regime: Which One Should You Pick?
Nobody likes paying taxes, but taking five minutes to run the numbers here can literally save you tens of thousands of rupees. The Indian government recently pushed the New Tax Regime hard, making it the default option and giving it better slab rates. But does that automatically make it better for you?
Not necessarily. If you pay rent (HRA), have a home loan, or max out your ₹1.5 Lakh 80C limit (via PPF, ELSS, or EPF), the Old Regime might still be your best friend. The calculator above does the heavy lifting: just drop in your gross salary and your total deductions, and it will instantly tell you exactly which regime leaves more money in your pocket.
A Quick Rule of Thumb
If your total deductions (80C + 80D + HRA + Home Loan Interest) cross roughly ₹3.75 Lakhs, you should probably stick to the Old Regime. If you don't have many investments, don't pay rent, and just want a simple tax filing process without maintaining proof of investments, the New Regime is a no-brainer.
What about the standard deduction?
For FY 2025-26 / AY 2026-27, salaried taxpayers get a standard deduction of ₹50,000 under the Old Regime and ₹75,000 under the New Regime. Our calculator automatically factors this in, so you don't need to type it into the "Other Deductions" box.
Frequently Asked Questions (FAQ)
Which is better: Old Tax Regime or New Tax Regime?
It depends on your deductions. If your total deductions (like 80C, HRA, 80D, home loan interest) exceed ₹3.75 Lakhs, the Old Regime is usually better. If you have very few deductions, the New Regime is more beneficial due to lower slab rates.
Is the ₹75,000 standard deduction available in the New Tax Regime?
Yes. For salaried employees and eligible pensioners, the standard deduction under the New Tax Regime is ₹75,000 for AY 2025-26 onward. Under the Old Regime, it remains ₹50,000.
What deductions are allowed under the New Tax Regime?
Very few deductions are allowed in the New Regime. The major ones include the ₹75,000 standard deduction for salaried individuals and the employer's contribution to NPS under Section 80CCD(2). Deductions like 80C, HRA, and 80D are generally not allowed.